The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1887-01-13

valuations greater than sixty per cent. OF their
true value In money, alleging that sixty per
cent was fu!l syerase oftns general A ya.nsticn @
avert q serious consequence that would ensue II
they succeeded, and to secure equality Of taxa
tion and Justice to en- re,yalnation ton 30 had
all valuations Of all kinds Of property might be
equalized over the whole State.
court has ~ rendered q decision in the Cuyahogs
County bank cases, in which the court finds the
fact to be that the real estate OF that county
was valued for taxation o. ne last decenniai mi ap
value in money, and that conforming to this
action as to realty. personal property is as
sessea ana returned % n nss ~ .ne in same 2.
county the shares of National banks can not be
assessed at higher valuation. and accordingly
enioins the collection @ Of taxes on valuation IN
State Board Of Equalization for bank shares
must either abdicate its powers entirely, or by
on s as or
requirement Of the statute, 1t must make spe.
cial rate for Cuyahoga County, which is unjust
u a ns IN @
eighty-seven counties to the Cuyahoga County
standard, which would be unjust to oil other
The board has felt it to be its duty to observe
the plain requirements Of the statute. They
have accordingly refused to be governed by the
,h Of whcn hS. mas oee :, odopse
any Of the many applications that have been
made to them by the banks OF other counties to
have their valuation scaled down to conform to
the decision OF the court.
It is an Injustice to the banks Of one county to
make them pay taxes on higher valuation than
be expected that such o wrong will be &C.
quiesced in. Unless, therefore, something be
done the banks of the other counties through
out the State will no doubt succeed in securing
secured by the banks Of Cuyahoga County. And
what Is secured for the banks can not and must
The consequence is that we are liable to serious
embarrassment SO long as the present conditions
continue.
In this same decision the court holds that the
owner Of shares in a National bank has u right,
In listing the same for taxation, to deduct from
their valuation all his liabilities, and for this
reason, viz, the shares of National banks are
taxable in the States only to the extent allowed
by section 52l9. Revised Statutes OF the United
States, and this section provides that they shall
capital in the hands Of private individuals. The
Constitution Of Ohio provides that every species
Of property. including credits" shall be taxed
the Revised Statutes of Ohio defines the term
'credits" to mean only the excess Of credits
over liabilities, and this statutory definition is
applied In listing credits for taxation. The
court holds that the credits from which the
citizens of Ohio are thus allowed to deduct their
debts are moneyed capital in the hands Of pri
5ai9 of the Revised Statutes Of the United
States, and that it would be taxing bank shares
at higher rate to not allow o similar deduction
from their valuation.
The capital and surplus of the National banks
OF the State amount to about SlB.500O00. They
are taxed upon this ut about &l ,0O.O0O. A con
disappear from the duplicate after this year II
the banks insist upon the advantage the de
cison gives them: and rs indicating that they
will do so 1t may be stated that many OF them
Already nOOlientiOn therefor
State Board Of Equalization. 1t may be safely
assumed that at least all such will avail them
selves of this advantage when they list theil
shares in 1887. The result will be not only to
embarrass the State but to unduly burden oil
other classes Of property.
Before suggesting possible remedy, another
| fact should be mentioned The last decennia
appraisement of real estate was had at u period
of great prosperity. 1t was o time OF genera
high values. Since then there has been heavy
decline. Farm property is from twenty-five tc
| fifty per cent. cheaper to-day than 1t was then
| The consequence is that farming lands of the
| State, where they have not been affected by the
growth OF cities or other development. are nov
| taxed on the average more nearly at their full
| value in money than any other class Of property
are taxed at even more than they could be solo
| for. But while this is true OF the farm lands
the reverse is true of the real estate Of many o.
| the cities Of the State where there has beer
great growth and development, as in some por
| tions Of Cincinnati and at Cleveland, Toledo
Columbus and many other cities that might bt
estate of these cities in 1890 are in the aggregate
less than fifty per cent Of their present true
| value in money, and in some cases 1t will moi
| exceed twenty-five per cent.
The consciousness Of this lack OF uniformity
| and the consequent injustice that must result t.
all who are fairly taxed: has had much to dt
| in producing the unsatisfactory results tha
| have been experienced.
| 1t is thought that Congress will so amend sec
| tion h219 Of the Revised Statutes of the United
hereto heretofore without % % aeductou II so, % that vii Il
afford remedy against that part OF the recen
decision. II not, you can, II upon consideration
by repeating the definition OF the term credits
| as used in the constitution, to be found in sec
tion s13o Of the Revised Statutes Of Ohio. Th
| statutory definition is thought by many to b,
unconstitutional. 1t has been upheld because
| of the supposed hardship of not allowing q de
| duction OF debts in making returns for taxes
There IS much to be said on both sides of thu
question The trainers of the constitution con
cluded that no deduction should be allowed
| The General Assembly subsequently took tn,
| opposite view, which has ever since obtained
Your attention Is called to the matter only tina
| you may again consider it in view Of the seriOu
consequences 1t has now brought upon us II
connection with the taxation of National banl
shares.
1t is unfortunate that we should be compellet
for any reason to endure the inequalities Of val
| uation that exist, and suffer the evil conse
qucnccs thereof any longer; but 1t is perhape
best in view OF all considerations, as you seemed
to think Mt your last session, to await the tim,
for the regular decennial appraisment Of req
| estate before having 1t regularly re-valued
| But 1t is thought something may be accom-
plished that will AFFORD at least partial relief. II
the special message that has been referred to
| II IS recommended that State Board Of equal
iZation be created to superntend the re-valuatiol
that was there recommended The necessity 70
| such board does not depend upon revalua
tion. On the contrary 1t may at least partl
obviate the need OF re-appraisement. Such
| board might be empowered to eQualiZe the ex
isting valuations. Il created, it should be givel
f,Nt1
every class and kind Of property with ever
| other.
The action of such board would secure uni
and thus put an end to the litigation that is nov
| SO successfully prosecuted by not only makin
u impossible, but BY removing the motive 70
disposition to contest taxation that was bsset
on o fair and uniform valuation.
In addition to the duties Of equalization, 70
Soara might be Of Sr great % saS witt
| q general supervision OF the whole subject O
| taxation and authorized to devise and enforce
| o more en1cient system than now obtains FOR Sc
curing the listing and taxation OF personal prop
| erty.
| The recommendation is repeated to provid
| for the taxation on their gross receipts OF for
| these may be mentioned telephones, transports
tion sleeping g-cur, parlorcar car trust and Ca
| equipment companies. The further recommends
| tion Is also repeated that the assessors of per
| sonal property be appointed in all cities. TIL
recommendation is confined to cities becaus
the constitution requires the election Of al
| township officers.
1t is believed that o large amount OF mortgag
securities unjustly escapes taxation. 1t is quit
common TO find mortgages given on property Il
Ohio which are not listed for taxation, The eX
| cuse given when the mortgage is applied to |
that he is only an agent for some one who is
nonresident. In many cases this Is no doub
true, but in many Others 1t is only u subterfug
| to evade taxation. This abuse might be largel
prevented by enacting that every mortgage o
land in Ohio shall be taxed where the land is